Coconut Downstreaming Investment in Morowali to Absorb 2,900 Workers

RRI.CO.ID, Jakarta - The Indonesian government is expanding its downstream processing program into the plantation sector by developing a coconut processing industry in Morowali, Central Sulawesi.

A Chinese company specializing in coconut‑based plant beverages, Zhejiang FreeNow Food Cooperation, is investing approximately IDR 776 billion (around USD 47 million) through its Indonesian entity, PT Freenow Food Industry, to build an integrated coconut processing facility.

Minister of Investment and Downstreaming and Head of the Investment Coordinating Board (BKPM), Rosan Roeslani, said the investment made by Zhejiang FreeNow Food Cooperation marks an important step in increasing the value of Indonesia’s national coconut commodity. In addition to strengthening the processing industry, the investment is expected to create jobs and improve farmers’ welfare.

“This investment is a significant step in boosting the downstream processing of the national coconut commodity,” Minister Rosan said during the official launch of PT Freenow Food Industry’s operations at the Indonesia Huabao Industrial Park (IHIP) in Morowali, Central Sulawesi, on Monday, September 7, 2026.

PT Freenow Food Industry will develop an integrated coconut processing industry covering the entire value chain, from upstream to downstream. The investment will be implemented in three phases.

In the initial phase, the company will produce coconut milk, concentrated coconut water, coconut oil, and coconut shell charcoal. It will then develop value‑added products, such as coconut milk and ready‑to‑drink beverages, for the export market.

The industry is designed to utilize nearly every part of the coconut--flesh, water, shell, and husk--which will be processed into various products.

In the first phase, PT Freenow Food Industry is projected to absorb around 184,000 metric tons of coconuts per year. The development of this industry is also expected to create nearly 2,900 jobs.

Once fully operational, the raw material requirement is estimated to reach the equivalent of 500 million coconuts per year. The industrial ecosystem is also expected to involve up to 10,000 farmers and community members.

The government is encouraging farmer participation in the industrial chain by guaranteeing the purchase of their harvests at fair prices. Support for smallholder plantation replanting, as well as the involvement of MSMEs and local suppliers, has also been arranged.

These measures are expected to ensure that the benefits of downstream processing are not limited to processing companies. Farmers, MSMEs, and local suppliers can also gain economic opportunities from the growing coconut industry.

Minister Rosan also stated that the government is opening opportunities for Zhenshi Holding Group to increase its investment in Indonesia. “We are providing broad opportunities for Zhenshi Holding Group to expand and increase its investment in Indonesia. Not only in sectors that are already operating, but also in other strategic sectors with great potential,” he said.

The official launch of PT Freenow Food Industry took place at the Indonesia Huabao Industrial Park (IHIP) in Morowali, Central Sulawesi. This industry is expected to strengthen the coconut commodity value chain while creating economic opportunities for the community.

The government is also committed to providing certainty and a business‑friendly environment for investors. The government is closely monitoring the implementation of these investments to ensure the downstream processing program delivers optimal benefits for the economy and the community. (Gusti Panji)